CLASS 5 The Evolution of Economic Thinking through the New Deal

These flashcards cover key economic concepts and historical events related to the New Deal and its impact on economic thinking.

Boom and Bust

A cycle of economic expansion and contraction that is believed to be unavoidable.

Laissez-faire

An economic system where the government minimizes its intervention in the economy.

Gross Domestic Product (GDP)

The total value of all goods and services produced within a country.

Keynesian Economics

An economic theory advocated by John Maynard Keynes, emphasizing the role of government in managing economic cycles.

Fiscal Policy

Government spending and tax policies used to influence economic conditions.

Monetary Policy

Actions by a central bank to control the money supply and interest rates in an economy.

New Deal

A series of programs and policies instituted by Franklin D. Roosevelt aimed at recovering from the Great Depression.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment.

Neoclassical Economics

An economic theory that suggests that individuals acting in their own self-interest can lead to economic stability.

Deficit

The financial shortfall that occurs when expenses exceed revenue.